Saturday, September 8, 2012

Pandora's and Apple

Pandora's business model is based on advertisements that they throw when someone is listening to their radio service. They have both audio and video advertisements. The video ads are quite ineffective because the person listening to the music may not be watching the display of the device. The audio ads are most of the time quite obtrusive and it seems they dont have any concept of relevance while placing the audio ads. Hence, the technology and business of ad supported model is not without flaws. They also are soon going to be subjected to new competition from Apple. Apple already has about 400 Million or more iTune users. It is simpler for them to integrate the pandora like radio seamlessly with every IOS devices. Apple may prefer a subscription model over ad supported model. They also already has a social service called "ping". Overall, Apple no doubt has a better chance in getting most of the market for the collaborative radio service. Pandora should start thinking about 1. business model 2. technology that can support their business model. In my estimation they may get about 2 years time before the Apple gets into the market fully. Hence, Pandora still have time to innovate. 

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